South Korea’s Automobile Sales in H1 2026

Automotive sales in South Korea rose 2.5% year-on-year (YoY) to 850,000 units in the first half of 2026. Political stability and a soaring stock market helped push the composite consumer sentiment index consistently above the 100-point threshold recently. This optimistic outlook boosted consumer appetite for big-ticket purchases, sparking vehicle replacement demand where BEVs emerged as the primary beneficiary. Consequently, BEV sales surged 2.2-fold YoY to 201,000 units during the same period. BEVs continue to receive more robust government backing than other powertrains through generous purchase subsidies and tax incentives. Additionally, rush demand ahead of the expiration of the individual consumption tax cut at the end of June 2026 acted as a strong secondary catalyst.